JIM STRICKLAND . 0 I MAYOR DOUG MCGOWEN emp CHIEF OPERATING OFFICER TENNESSEE June 18, 2020 Lori Cate Via Hand Delivery and Facsimile Transmittal to: Waste Pro of Tennessee, Inc. 407-869-8884 4330 Lamar Ave Memphis, TN 38118 RE: Notice to Cure Breach within 20 Business Days (Contract 36792, Paragraph 2, Pages 16 - 17) Dear Ms. Cate: This letter serves as notice that Waste Pro has failed to provide services in violation of the terms of its contractual agreement with the City of Memphis and such failures must be cured within the next twenty (20) business days of the date of this letter per Paragraph 2 of the contract as referenced above. Speci?cally, the City gives this notice that we will exercise all rights under the contract for Waste Pro?s continued failure to perform services in compliance with the terms of the RFP and the Contract if these failures are not cured within twenty (20) business days. These performance failures include: I. Missed collection complaint totals consistently above allowable limits speci?ed in the RFP, Dedicated vehicle counts below levels required by Waste Pro?s response to the RFP and/or inadequate number of equipment to complete services daily, 311 requests closed without completing service, 4. Missed routes, streets, neighborhoods and/or consecutive homes when providing daily services, routes not 100% completed daily, and 5. Managers and supervisors are not visually inspecting routes daily to validate routes are completed daily. Beginning in January of 2020 through present, Waste Pro failed to meet performance standards as Outlined in the Contract and RFP as follows: January Total Missed 1,931 Garbage Missed 900 Bulk Trash Missed 731 Recycling Missed 300 February Total Missed 669 Garbage Missed 426 Bulk Trash Missed 144 Recycling Missed 99 March Total Missed 1,796 Garbage Missed 1,129 Bulk Trash Missed 421 Recycling Missed 246 125 North Main Street, Room 308, Memphis, TN 38103 Phone: 901-636-6586 FAX: 901-636-6555 Lori Cate Page 2 of 3 June 18, 2020 April Total Missed 3,799 Garbage Missed 1,709 Bulk Trash Missed 1,582 Recycling Missed 508 May Total Missed 5,135 Garbage Missed 3,008 Bulk Trash Missed 1,503 Recycling Missed 624 TOTAL COMBINED MISSED 13,330 As indicated in the RF P, Page 63, Section 12.1.2, ?The number of justi?ed complaints is not to exceed more than ?fteen (15) per week.? Additionally, in accordance with the RFP, Page 66, Section 16.4.1, liquidated damages are assessed when Complaints in an Operating Month exceed the totals in the table below: Garbage, Excess Trash and Bulky Waste 150 Complaints Source Separated Recyclable Materials 75 Complaints Yard Trash (Jan Sep) 75 Complaints Yard Trash (Oct Dec) 150 Complaints In an effort to continue business with Waste Pro but exercise its rights under the Contract, the City assessed liquidated damages due to Waste Pro?s failure to perform as listed below: December 2019 Issued notice of intent to assess liquidated damages in the amount of $16,400 for month of November 2019; January 2020 - liquidated damages assessed $106,900 for December 2019; February 2020 - liquidated damages assessed $114,900 for January 2020; March 2020 - liquidated damages assessed $6,900 for February 2020; April 2020 - liquidated damages assessed $39,000 for March 2020; and May 2020 - liquidated damages assessed $50,400 for April 2020. Moreover, Waste Pro failed to maintain the number of equipment required to provide timely collections per Exhibit B, Tab 15 ?Operations Plan? of Waste Pro?s response to the RFP which provides that Waste Pro would dedicate l3 automated side loader (ASL) garbage trucks, 10 ASL recycle trucks, 5 semi- automated rear loader trash trucks, and 7 grapple trucks for the City. Also, per bullet 5 of the contract Addendum on Page 20 of the contract, Waste Pro must ?have an adequate number of equipment.? On May 15, 2020, Waste Pro representative, Josh Vickery, advised that only 5 ASL garbage trucks, 10 rear loader garbage trucks, and 7 grapple trucks were currently dedicated to City services, a 37% reduction of the required pieces of equipment. Waste Pro did not notify or seek approval from the City for this reduction. On June 5, 2020, Mr. Vickery, promised an additional 10 pieces of equipment would be added as of June 9, 2020, still 3 vehicles short of the amount outlined in the Operations Plan. Lori Cate Page 3 of 3 June 18, 2020 As indicated herein, Waste Pro has failed to perform its obligations in accordance with the terms of the Contract. The City must provide the essential service of trash pick-up for its citizens. Due to Waste Pro?s inability to perform the services contracted for by the City, the citizens and the City have incurred loss of services and damages. Also, the City has incurred additional expenses to supplement the collections efforts of Waste Pro by activating an emergency contractor to provide outside the cart bulk collections for six (6) weeks during January and February 2020 and again starting May 26, 2020 to last approximately six (6) weeks. The City also asserts that Waste Pro has fraudulently reported that complaint tickets citizens have submitted through 31 I have been corrected. Waste Pro knew that such representations were false. Such action is itself a breach of the Contract. Pursuant to the Contract, you have twenty (20) business days to cure your breaches of the Contract as stated herein. Moreover, as stated herein, there should be no justi?ed complaints in excess of the amount contemplated by the terms of the Contract and the RFP. The number and type of equipment dedicated to Memphis should comply with the totals speci?ed in the RFP and the contract addendum. 311 requests must be serviced if closed by Waste Pro and crews must stop the practice of missing routes, streets, neighborhoods and/or consecutive residences when providing services. Waste Pro management must visually inspect routes daily to validate 100% completion. Further, all pending de?ciencies must be cured within the twenty (20) day cure period. Waste Pro?s addition of 10 pieces of equipment as of June 9, 2020 was a positive step in the right direction towards addressing ongoing concerns. However, these vehicles must be out?tted with the preper service delivery veri?cation technology as provided in the RFP to ensure services are being provided timely. We will meet with your local Memphis team weekly for status updates, to discuss improvements, to troubleshoot concerns and to answer questions. The contractor performing bulk collections in Area in the neighborhoods south of Poplar will remain in place until July 4. Should you wish to discuss this notice, please contact Albert Lamar, Solid Waste Director, at 901-636? Chief Operating Of?ce cc: Roland Joyner, Regional Vice President, Waste Pro (via Fax and Email) Jennifer Sink, Chief Legal Of?cer, City of Memphis (via Email) Albert Lamar, Public Works Director, City of Memphis (via Email)